The verdict in three sentences
In Lagos, Paystack wins on a clean flat-plus-percentage rate and fast Nigeria payouts, while Flutterwave wins on multi-country and card reach. The right gateway depends on your monthly volume, not the percentage on the pricing page. Below the equivalent of 2,500,000 FCFA in monthly GMV, stay on a gateway; above it, a direct API can be justified.
Real gateway rates in 2026
Headline percentages hide caps, settlement delays, and flat fees that change everything at low volume. 2026 order of magnitude.
| Gateway | Local fee | Card fee | Settlement |
|---|---|---|---|
| Paystack | 1.5% + 100 NGN (cap 2,000 NGN) | included | T+1 (Nigeria) |
| Flutterwave | 1.4% local | +1.5% card | T+1 to T+2 |
| CinetPay | 2.5 to 3.5% (Wave/OM/MoMo) | ~3.5% | T+2 |
The Paystack case is instructive: the flat 100 NGN fee, capped at 2,000 NGN, penalizes small baskets but becomes negligible on large amounts. On a 3,000 NGN basket, 1.5% + 100 NGN = 145 NGN, nearly 4.8% effective.
Volume, not rate: the break-even point
The real decision is between a gateway (fast, shared) and a direct API (cheaper per transaction, heavy to build). Here is the switch math.
| Monthly GMV | Gateway fees (3%) | Direct API fees (1.5%) | Gap/month |
|---|---|---|---|
| 1,000,000 FCFA | 30,000 FCFA | 15,000 FCFA | 15,000 FCFA |
| 2,500,000 FCFA | 75,000 FCFA | 37,500 FCFA | 37,500 FCFA |
| 5,000,000 FCFA | 150,000 FCFA | 75,000 FCFA | 75,000 FCFA |
| 10,000,000 FCFA | 300,000 FCFA | 150,000 FCFA | 150,000 FCFA |
A direct API costs 400,000 to 900,000 FCFA equiv. to build. At 2,500,000 FCFA in monthly GMV, the 37,500 FCFA gap repays that project in 11 to 24 months — the threshold where the question is worth asking.
Mini case study
Chidi, who runs a food business in Lagos and sells his sauces online, does the equivalent of 4,000,000 FCFA/month in GMV. On a gateway at 3%, he pays 120,000 FCFA/month. A direct API at 1.5% would cost 60,000 FCFA/month, saving 60,000 FCFA, repaying a 700,000 FCFA build in 12 months. At that volume the switch is justified — but he keeps the gateway for marginal payment methods.
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FAQ
Paystack or Flutterwave to sell in Nigeria?
For a fully local customer base, Paystack's flat-plus-percentage model is predictable and payouts are fast. Flutterwave becomes relevant as soon as you target multi-country and international cards.
Is Flutterwave's 1.4% the final cost?
No: add ~1.5% for cards, and check payout and FX fees. The "local" rate only applies to local methods.
How long before I receive the money?
Expect T+1 to T+2 depending on gateway and country in 2026. Slower settlement ties up your cash flow and belongs in the decision.
At what volume should I move to a direct API?
Around the equivalent of 2,500,000 FCFA in monthly GMV, the fee gap starts repaying a 400,000 to 900,000 FCFA build in under two years.
Can I run two gateways in parallel?
Yes, and it is common: one for local methods, one for international cards. It lifts conversion at the cost of slightly more complex reconciliation.
Let's talk about your project. We compare Paystack, Flutterwave and a direct API on your real numbers. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
